EDP’s profit fell 12% in 2015 – publico

                 

                         
                     

                 

 
 

For the first time since 2008, the net proceeds from the EDP were below EUR one billion, paying them in 913 million (-12% compared to 2015). A result in which Portugal weighed the negative, either by lower electricity production from hydropower, either by reducing the remuneration of the group’s distribution assets, EDP said.

Still, the earnings before interest, taxes, depreciation and amortization (EBITDA) rose 8% in the year to 3.9 billion euros, helped by renewable business growth (especially the US) and Brazil. “An interesting operating results in a particularly challenging time for the sector”, whether the regulatory level or tax, noted the President of the EDP Group press conference on Thursday.

“The result this year is clearly affected by Portugal, a lot for water production, but also by a set of rules that were not here when decisions were taken and that penalize investment, “said António Mexia. the manager highlighted the fact that the remuneration rate applied to assets the group has fallen from 7.41% to 5.49% in 2015, considering the extraordinary contribution of the energy sector (EESC), which was introduced by the previous government PSD / CFDS, but extended the current executive.

in the disclosure of the annual accounts, the president of EDP was asked about the social tariff (since the budget proposal for this year should contain the agreed measure with the Left Bloc to transfer the total cost of financing for producers of electricity) but also did not miss the opportunity to criticize the EESC and repeat that “extraordinary measures should leave,” because, he believes, “times have changed”. “It makes no sense to have a tax on investment that falls only on a single sector,” criticized yet.

Of the 1.7 billion euros that EDP invested last year, 700 million were invested in Portugal, which gives the company the status of “largest investor in the country.” But measures such as the EESC (which last year cost the EDP approximately EUR 60 million) and the imposition of financing the social tariff “do not favor investment,” he said.

In the case of the social tariff ( discount that EDP was assigned to 116 thousand in February), Mexia appealed even to a 2015 document from the European Commission, to say that the Community authorities consider measures to support vulnerable consumers should be funded through the budgets of the states, or resorting to other consumers (such as the social rate of gas, which is funded by gas customers who are not eligible for discounts). Portugal has not chosen these ways, reminded Mexia, saying, however, that EDP “fully supports” measures that protect the most vulnerable consumers.

Without advance the allocation of costs to social tariff and ASECE (extraordinary support to the energy consumer, a cumulative discount to the discount of the share price, which to date was secured by public funds) may be reflected in an increase in electricity prices, President of EDP commented that solution advocated at European level is “the most fair and effective” because “allows the system [electric] is more efficient and does not result in uncontrolled ascents of tariffs”.

according to the calculations Block and PS, making the power with the social tariff and ASECE – that parties want to see reach one million households through automatic allocation – should be around 100 million euros, while the EDP the lion’s share funding.

on the positive side in the 2015 accounts, Mexia highlighted once again the commitment of the group in renewable (in 2015 profit EDP Renováveis ​​rose 32% to EUR 167 million) and diversification of geographies that assured the EDP “resilient results.” In Brazil, despite the drought and the real depreciation, EBITDA grew 38% to 857 million euros, benefiting from the full consolidation of central Pecém.